1. NEXEN’s Convertible Bond Issuance: What Happened?
On September 22, 2025, NEXEN decided to issue KRW 23.5 billion in convertible bonds. The conversion price is set at KRW 7,686, with a 0% coupon and maturity rate. Major investors include NH Investment & Securities and Soosung Asset Management.
2. Why Issue Convertible Bonds?
- Secure Operating Funds: The funds will be used to secure future growth engines such as R&D and facility investment.
- 0% Interest Rate: This is a strategy to minimize short-term financial burden.
- Potential Investment Attraction: The conversion price is set higher than the current stock price, allowing investors to profit if the stock price rises.
3. Impact on Investors
- Positive Aspects: Increased corporate growth is expected through investments in new businesses and R&D using the funds raised. The low interest rate reduces the financial burden.
- Negative Aspects: There is a possibility of stock dilution upon conversion of the bonds. If the stock price fails to reach the conversion price, investors may incur losses.
4. Investor Action Plan
Investment decisions should be made after comprehensive analysis of NEXEN’s fundamentals, growth potential, and risk factors. In particular, careful consideration should be given to the tire industry outlook, NEXEN’s competitiveness, and the macroeconomic environment. This analysis is not an investment recommendation, and the responsibility for investment decisions lies with the individual investor.